Tuesday, August 19, 2008

Monday PM Notes - 3LB Reversal Failure

Thought I'd share one final thought and pic in response to Roger's comment to Monday's post. While I find three line break extremely beneficial as a supplemental signal -- especially for reversals after significant trends -- Monday's late day rhythm goes to show that no signal by itself is infallible.

Extremely sloppy short-term chart patterns, and I was frankly fortunate I don't typically trade much in the last hour due to decreased focus (don't get me going on my deteriorating poker play after a long session) and from seeing occasional end-of-day chop like this at times. Still, the first green bar in the circle -- or even the one to the left of the circle -- could have signalled the beginning of a significant and consistent late-day squeeze. This time of course it didn't.

I'm still looking for that 100% probability trigger. It will be a long search.

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